Unit 1: The Analytical Mindset of Accounting

Conceptual Knowledge
Students will understand:

• The purpose of Accounting 2 as an analytical extension of Accounting 1
• The role of accounting in business decision-making
• The relationship between accounting data and business strategy
• The importance of professional judgment in accounting
• Ethical responsibility in financial reporting
• How internal controls reduce fraud risk
• How uncollectible accounts impact financial statements

• Analyze financial scenarios and identify potential accounting risks
• Compare two companies’ financial performance at a surface level
• Evaluate how estimation (like bad debt expense) affects net income
• Interpret financial statement relationships rather than just prepare them
• Identify red flags in simplified financial cases
• Defend accounting decisions using evidence
• Engage in structured discussion around ethics and financial transparency
• Complete a mini forensic-style case study

Students will complete a Financial Analysis Case Simulation.

Students receive a short business case including:
• A summarized income statement
• A summarized balance sheet
• Accounts receivable data
• A brief company background

Students must:

1. Identify potential financial concerns

2. Evaluate the company’s handling of uncollectible accounts

3. Explain how accounting choices impact reported profit

4. Recommend improvements to strengthen financial transparency

5. Present findings in a structured written or presentation format

Assessment Components:

• Analytical written response
• Short constructed-response explanation of accounting impact
• Participation in structured financial discussion
• Reflection on how accounting decisions influence stakeholder trust

Optional Advanced Extension:
Students compare a real public company’s financial statement excerpt (later leading into 10-K work).